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==Reasons to keep low inventory levels==
According to Malakooti (2013) <ref>{{cite book|last1=Malakooti|first1=Behnam|date=2013|title=Operations and Production Systems with Multiple Objectives|publisher=John Wiley & Sons|isbn=978-1-118-58537-5}}</ref> reasons to keep low inventory levels are:
# Obsolescence Due to advances in technology and changes in product design, parts procured for future use may become obsolete, leading to a substantial loss. Also, in food-related industries, outdated food products must be thrown away, leading to a waste of resources.
# Capital Investment Inventory ties up a substantial capital of the company and may not allow the company to be agile in response to market fluctuations. Space Usage Inventory occupies precious usable space that may be essential for other purposes. Also the space is usually costly to maintain.
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